You need an investment plan which gives you the best possible chance of meeting your retirement needs and expectations - and that means spreading your money across the widest possible range of assets.

Diversifying means dividing your investments into relatively volatile but good long term growth asset classes such as shares and property - as well as into more defensive classes such as cash and fixed securities.

Growth Asset classes

Shares

Investing in a company's shares means you have part-ownership of that company and the right to benefit from any profit it makes. Share values can go up and down depending on factors such as the company's performance and the impact on it of the economy at home and abroad.

Because Australia makes up less than 2% of the world share market, GESB invests in international as well as Australian shares.

Property

If property is included in your mix of assets, it could include retail (such as shopping centres), industrial (such as factories), and office buildings. GESB superannuation schemes currently invest in listed property securities.

Defensive asset classes

Cash

Although cash may be king as far as our daily lives are concerned, cash deposits and bank bills are usually only short to medium-term investments. Returns are generally very stable and relatively low.

Fixed Interest

Domestic and global fixed interest securities are bonds or debt securities which are issued by governments, related government authorities and corporations around the world. They are very diverse and cover a full range of credit risk ratings. GESB's investments in global bonds are fully hedged back to the Australian dollar so that exposure to the risk of currency volatility is limited.

The extent to which you're inclined to take risks with your superannuation scheme investment tends to change as your lifestyle, income, responsibilities and goals do so. Our risk profile calculator is a good place to start getting a feel for the kind of investor you really are.